South Korea tokenized government bonds will enter a government pilot in 2027 using infrastructure connected to the Bank of Korea’s wholesale CBDC.
The finance ministry confirmed the schedule in its economic growth strategy for the second half of 2026, presented during a cabinet meeting on July 14.
The initiative will issue and manage sovereign debt in tokenized form through the central bank’s developing CBDC system.
Officials have not identified which government bonds will participate, who may join, or which blockchain networks could support the project.
The strategy also does not specify whether the trial will cover issuance, secondary trading, post-trade settlement, or several stages.
Wholesale CBDC infrastructure expands
The government also wants the Bank of Korea to examine interoperability between its CBDC infrastructure and external blockchain networks. Such connectivity would allow the bank’s permissioned ledger to interact with outside systems rather than operate solely as a closed domestic payment platform.
The proposal follows comments from Bank of Korea Governor Hyun Song Shin at the European Central Bank Forum on Central Banking on July 1.
He described government bonds as the “big prize” for tokenization and proposed placing tokenized bonds, central bank money, and tokenized bank deposits on one blockchain. The concept would extend the central bank’s existing Project Hangang.
The Bank of Korea has also warned that faster, continuously available settlement could transmit financial stress more rapidly and create additional exposure.
Stablecoin and ETF rules advance
South Korea plans to pursue passage of the Digital Asset Basic Act during the second half of 2026. The legislation would establish a legal framework for businesses involving Korean won-pegged stablecoins.
The bill was previously expected during the first quarter but was reportedly delayed by the US-Iran conflict, local elections, and National Assembly committee scheduling.
Ten digital asset and stablecoin bills from the Democratic Party and the People Power Party remain pending before lawmakers.
Officials also plan to regulate cross-border stablecoin transactions and revise the Capital Markets Act to permit the country’s first spot crypto ETFs.
In addition, the government intends to trade Global Voluntary Carbon Market credits on blockchain infrastructure with international organizations.
Private sector trials move earlier
Ripple and Kyobo Life Insurance completed what they called South Korea’s first tokenized government bond settlement on April 15, 2026.
The transaction used Ripple’s blockchain and settled almost immediately, replacing the standard two-day process.
A separate finance ministry pilot will use tokenized bank deposits for state spending. That program is scheduled to begin in Sejong during the fourth quarter of 2026.
The broader strategy also includes tokenized securities planned for February 2027. Separately, Seoul designated physical AI, AI data centers, and semiconductors as three “Mega Projects.” The government plans 800 trillion won, or $535.6 billion, in semiconductor investment to establish a second manufacturing hub in the country’s southwest.
